Financial Data and Key Metrics Changes - VeriSign generated $410 million in revenue for Q2 2025, reflecting a 5.9% increase year-over-year [11] - Operating expenses totaled $129 million, down from $131 million in the previous quarter and up from $121 million a year ago [11] - Net income for the quarter was $207 million, consistent with the previous quarter and the same quarter last year [11] - Diluted earnings per share increased to $2.21 from $2.10 in the last quarter and $2.01 a year ago [11] - Free cash flow was $195 million, compared to $160 million in the previous quarter and $151 million a year ago [12] Business Line Data and Key Metrics Changes - The domain name base for .com and .net reached 170.5 million, an increase of 660,000 from the previous quarter [6] - New registrations for Q2 totaled 10.4 million, up from 10.1 million last quarter and 9.2 million a year ago [6] - The renewal rate for 2025 is expected to be 75.5%, an increase from 72.7% a year ago [6][21] Market Data and Key Metrics Changes - All geographic regions showed year-over-year improvement in new registrations and renewal rates, with Asia Pacific showing particular strength [7] - Registrars are increasingly focusing on customer acquisition, contributing to improved demand for domain names [20] Company Strategy and Development Direction - The company is adapting its marketing programs to engage a diverse registrar channel, aiming for broader engagement [13][30] - VeriSign's mission remains focused on providing critical Internet infrastructure with 100% availability and security [15] - The company plans to continue paying quarterly dividends, subject to market conditions and board approval [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding improving trends in domain name registrations, while acknowledging economic and geopolitical uncertainties [7][22] - The company has incorporated conservatism into its forecasts, reflecting ongoing monitoring of market conditions [25] Other Important Information - VeriSign has $594 million in cash, cash equivalents, and marketable securities at the end of the quarter [8] - The Board of Directors has authorized an increase in share repurchase to a total of $1.5 billion [9] Q&A Session Summary Question: What are the drivers for the domain strength? - Management noted a refocus on new customer acquisition by registrars and engagement with marketing programs as key drivers [20] Question: Is the strength in Asia Pacific due to better economy or marketing programs? - Management indicated that both factors are contributing, with solid demand observed in the region [24] Question: How are marketing programs influencing registrar strategies? - Management clarified that marketing programs are accelerating demand, while registrars are also focusing on new customer acquisition [29] Question: Any updates on new domain options and the impact of AI? - Management confirmed that ICANN plans to open applications for new GTLDs in Q2 next year and expressed optimism about AI's potential benefits for domain names [40][44]

VeriSign (VRSN) Q1 2025 Earnings Call April 24, 2025 04:30 PM ET Company Participants David Atchley - VP, Treasury & Investor RelationsD. James Bidzos - Executive Chairman, President & CEOGeorge Kilguss - Executive VP & CFOYgal Arounian - Director - Internet Equity ResearchJohn Calys - SVP & Chief Accounting Officer Conference Call Participants Rob Oliver - Senior Research Analyst Operator Good day, everyone. Welcome to VeriSign's First Quarter twenty twenty five Earnings Call. Today's conference is being r ...